Gambar halaman
PDF
ePub
[ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors]

CHAPTER 681

(See FISCAL NOTE at end of Chapter.)

AN ACT to amend the administrative code of the city of New York and the education law, in relation to providing for public employer pickup, pursuant to provisions of the internal revenue code, of contributions required to be made by Tier I and Tier II members (other than uniformed force members) of certain public retirement systems supported by such city, and to amend the administrative code of the city of New York, the tax law, the general city law and the codes and ordinances of the city of Yonkers, in relation to the taxable status of such picked up contributions

Became a law July 31, 1992, with the approval of the Governor. Passed on
Home Rule request pursuant to Article IX, section 2(b) (2) of the
Constitution. Passed by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision 90 of section 13-101 of the administrative code of the city of New York, as added by chapter 114 of the laws of 1989, is amended to read as follows:

90. "Starting date for pick up." [The] (a) With respect to uniformed force members, such term shall mean the first day of the first whole payroll period commencing after the date which is three months after the internal revenue service shall have issued a ruling that member contributions picked up pursuant to section 13-125. I of this chapter are not includible as gross income for federal income tax purposes until distributed or made available.

(b) With respect to Tier I and Tier II non-uniformed-force members, such term shall mean the first day of the first whole payroll period commencing after the date which is sixty days after the internal revenue service shall have issued a ruling that member contributions picked up pursuant to section 13-125.2 of this chapter are not includible as gross income for federal income tax purposes until distributed or made available.

§ 2. Section 13-101 of the administrative code of the city of New York is amended by adding five new subdivisions 91, 92, 93, 94 and 95 to read as follows:

91. "Tier I or Tier II non-uniformed-force member." Any member of the retirement system who both (a) is a Tier I member or a Tier II member and (b) is not a uniformed force member (as defined in subdivision eighty-five of this section).

92. "Basic rate of contribution as a Tier I or Tier II non-uniformedforce member." (a) Subject to the provisions of paragraph (b) of this subdivision, the term "basic rate of contribution as a Tier I or Tier II non-uniformed-force member" shall mean the proportion of the earnable compensation of each Tier I or Tier II non-uniformed-force member required by the applicable provisions of section 13-125 of this chapter and any other applicable provisions thereof to be deducted from the compensation of such member as his or her required member contributions, exclusive of any increase in such contributions resulting from any election by such member pursuant to law to effect such an increase or any in such contributions on account of any program for increasedtake-home-pay or pursuant to subdivision one of section one hundred thirty-eight-b of the retirement and social security law (relating to election to decrease member contributions by contributions due on account of social security coverage).

decrease

(b) In any case where a Tier I or Tier II non-uniformed-force member who is a fifty-five-year-increased-service-fraction member (as defined in subdivision fifty-one of this section) has elected or elects pursuant to subdivision i of section 13-125 of this chapter to contribute to the retirement system at a rate one per centum less than such member's normal rate of contribution, such member's basic rate of contribution as a Tier I or Tier II non-uniformed-force member, during any period where in such election is in effect, shall be one per centum less than such

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

member's normal rate of contribution as a fifty-five-year-increasedservice-fraction member. In any case where any such member elects pursuant to such subdivision i to discontinue such reduction, such election to discontinue shall not be deemed, for the purposes of subdivision ninety-five of this section, to be an election to increase member contributions above the level prescribed by the member's basic rate of contribution as a Tier I or Tier II non-uniformed-force member and upon such discontinuance, such member's basic rate of contribution as a Tier I or Tier II non-uniformed-force member shall be such member's normal rate of contribution as a fifty-five-year-increased-service-fraction member.

93. "Contributing Tier I or Tier II non-uniformed-force_member." With respect to any payroll period as to which the status of a Tier I or Tier II non-uniformed-force member as to required member contributions is to be determined, the term "contributing Tier I or Tier II non-uniformedforce member" shall mean any Tier I or Tier II non-uniformed-force member other than:

(a) a Tier I or Tier II non-uniformed-force member who is not required to contribute during such payroll period because of his or her then currently effective election, pursuant to subdivision c of section 13-125 of this chapter or subdivision c-1 or subdivision c-2 of such section, not to contribute; and

(b) a Tier I or Tier II non-uniformed-force member who is not required to contribute during such payroll period because such member has been relieved of making member contributions pursuant to the provisions of subdivision 1 of section 13-161 of this chapter.

94. "Employer responsible for pick up." The public employer by whom a Tier I or Tier II non-uniformed-force member is employed.

95. "Tier I or Tier II non-uniformed-force member contributions eligible for pick up by the employer." (a) With respect to any payroll period for a contributing Tier I or Tier II non-uniformed-force member (as defined in subdivision ninety-three of this section), the term "Tier I or Tier II non-uniformed-force member contributions eligible for pick up by the employer" shall mean the amount of member contributions which, in the absence of a pick up program applicable to such member pursuant to section 13-125.2 of this chapter (providing for pick up of required member contributions of certain contributing Tier I or Tier II nonuniformed-force members) would be required by law to be deducted, on account of such member's basic rate of contribution as a Tier I or Tier II non-uniformed-force member (as defined in subdivision ninety-two of this section), from the compensation of such member for such payroll period, after (1) giving effect to any reduction in such contributions required under any program for increased-take-home-pay or pursuant to subdivision one of section one hundred thirty-eight-b of the retirement and social security law and (2) excluding any deductions from such compensation (or redeposits, restorations or payments) on account of (i) loans or withdrawal of excess contributions or (ii) any election by any such member, pursuant to any applicable provision of law, to increase his or her member contributions above the level prescribed by his or her basic rate of contributions as a non-uniformed-force member or (iii) any election by any such member who is a transit twenty-year plan member to purchase additional annuity pursuant to paragraph ten of subdivision 1 of section 13-161 of this chapter or (iv) any other cause not attributable to the member's basic rate of contribution as a Tier I or Tier II nonuniformed-force member after reduction in such rate, if any, as described in subparagraph one of this paragraph (a).

(b) In any case where during any payroll period for a Tier I or Tier II non-uniformed-force member, there is in effect an election by such member pursuant to subdivision 1 of section 13-125 of this chapter to contribute at a rate one per centum less than such member's normal rate of contribution, then for the purposes of this subdivision and of section 13-125.2 of this chapter, such reduced rate of contribution, notwithstanding any provision of law to the contrary, shall, with respect to such payroll period, be deemed to be and treated as such member's basic rate of contribution as a Tier I or Tier II nonuniformed-force member.

to

be

(c) If no deductions on account of the basic rate of contribution as a Tier I or Tier II non-uniformed-force member are required by law made from the compensation of such member for any payroll period, such member shall not have, for such payroll period, any Tier I non-uniformed-force member contributions eligible for pick up by the employer. The amount of Tier I or Tier II non-uniformed-force member

or

[merged small][ocr errors][ocr errors]

contributions eligible for pick up by the employer of any Tier I or Tier II non-uniformed-force member for any payroll period shall be determined solely on the basis of the compensation which would have been paid to such member for such payroll period by his or her public employer in the absence of a pick up program applicable to such member pursuant to section 13-125.2 of this chapter. A Tier I or Tier II non-uniformed-force member shall not have any Tier I or Tier II non-uniformed-force member contributions eligible for pick up by the employer with respect to any payroll period for which he or she is not paid compensation by his or her public employer.

§ 3. The administrative code of the city of New York is amended by adding a new section 13-125. 2 to read as follows:

§ 13-125.2 Pick up of Tier I or Tier II non-uniformed-force member contributions by employer. a. Notwithstanding any other provision of the law to the contrary, on and after the starting date for pick up, the employer responsible for pick up shall pick up and pay into the annuity savings fund the Tier I or Tier II non-uniformed-force member contributions eligible for pick up by the employer which each Tier I or Tier II non-uniformed-force member would otherwise be required to make on and after such starting date.

b. An amount equal to the amount of such picked up contributions shall be deducted by the employer responsible for pick up from the compensation of such member (as such compensation would be in the absence of a pick up program applicable to him or her hereunder) and shall not be paid to such member. Such deduction shall be effected by means of subtraction from such member's current compensation (as SO defined) or offset against future pay increases, or a combination of such methods.

c. (1) The member contributions picked up pursuant to this section for any Tier I or Tier II non-uniformed-force member shall be paid by the employer responsible for pick up in lieu of an equal amount of the member contributions otherwise required to be paid by such member under the provisions of this chapter and shall be deemed to be and treated as employer contributions pursuant to subsection h of section four hundred fourteen of the United States internal revenue code, as amended, for the purposes, under federal law, for which such subsection h SO classifies such picked up contributions. Subject to the provisions of subdivision b of this section, for all other purposes, including but not limited to: (i) the obligation of such member to pay New York state and New York city income and/or wages or earnings taxes and the withholding of such taxes; and

(ii) the determination of the amount of such member's Tier I or Tier II non-uniformed-force member contributions eligible for pick up by the employer; and

(iii) the determination of the amount of any retirement allowance or other retirement system benefit payable to or on account of such member any other retirement system right, benefit or privilege of such mem

or

ber;
the amount of the member contributions picked up pursuant to this sec-
tion shall be deemed to be a part of the employee compensation
of such
member and such member's gross compensation (as it would be in the ab-
sence of a pick up program applicable to him or her hereunder) shall not
be deemed to be changed by such member's participation in such program.
(2) Nothing contained in paragraph one of this subdivision c shall be
construed as superseding the provisions of section four hundred thirty-

one

of the retirement and social security law or any similar provision of law which limits the salary base for computing retirement benefits payable by a public retirement system.

d. (1) For the purpose of determining the retirement system rights, benefits and privileges of any Tier I or Tier II non-uniformed-force member whose contributions eligible for pick up by the employer are picked up pursuant to this section (including the procurement of loans by any such member), such picked up member contributions shall be deemed to be and treated (1) as member contributions made by such member pursuant to law and (ii) as a part of such member's accumulated deductions. (2) Interest on contributions picked up for any Tier I or Tier II nonuniformed-force member pursuant to this section shall accrue in favor of the member and be payable to the retirement system at the same rate, for the same time periods, in the same manner and under the same circumas interest would be required to accrue in favor of the member EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

stances

and be payable to the retirement system on such contributions if they were made by such member in the absence of a pick up program applicable to such member under the provisions of this section.

(3) Member contributions of any Tier I or Tier II non-uniformed-force member which are picked up and paid into the annuity savings fund pursuant to this section shall be credited to a separate account within the individual account of such member in such fund, so that a separate record of the amount of such picked up contributions is maintained.

(4) Nothing contained in this subdivision d shall be construed as granting member contributions picked up under this section any status, under federal law, other than as employer contributions, pursuant to subsection h of section four hundred fourteen of the United States internal revenue code, for the federal purposes for which such subsection h so classifies such picked up contributions.

e. No member whose member contributions are required to be picked up pursuant to this section shall have any right to elect that such pick up, with accompanying deduction from the compensation of such member as prescribed by subdivision b of this section, shall not be effectuated.

§ 4. Section 13-501 of the administrative code of the city of New York is amended by adding five new subdivisions 65, 66, 67, 68 and 69 to read as follows:

65. "Basic rate of contribution as a Tier I or Tier II member." (a) Subject to the provisions of paragraph (b) of this subdivision, the "basic rate of contribution of a Tier I or Tier II member" in the case of any contributor who is such a member shall mean the percent of the total amount of salary earnable by such contributor in a payroll period, which percent, pursuant to the provisions of section 13-521 of this chapter and other applicable provisions thereof, is required to be deducted as the member contributions of such contributor, exclusive of any increase in such contributions resulting from an election by such contributor pursuant to section 13-525 of this chapter or subdivision two of section 13-554 of this chapter to effect such an increase, or any decrease in such contributions on account of any program for increasedtake-home-pay or pursuant to subdivision one of section one hundred thirty-eight-b of the retirement and social security law (relating to election to decrease member contributions by contributions due on account of social security coverage).

(b) In any case where it is provided in this chapter that the deduction from salary on account of member contributions required to be made by a contributor who is a Tier I member or Tier II member shall not be in excess of fifteen per centum unless the contributor SO elects, and such contributor makes such election, any per centum of such deduction in excess of fifteen per centum with respect to such contributor shall not be included in such contributor's basic rate of contribution as a Tier I or Tier II member.

66. "Contributing Tier I or Tier II member." With respect to any payroll period as to which the status of a contributor who is a Tier I member or Tier II member as to required member contributions is to be determined, the term "contributing Tier I or Tier II member" shall mean any Tier I member or Tier II member other than any such member who, under the provisions of section 13-524 of this chapter, is not required to contribute during such payroll period. A contributor who, being a Tier I member or Tier II member, is not required to contribute under the provisions of such section 13-524, but who nevertheless continues to make member contributions, shall not be deemed to be a contributing Tier I or Tier II member.

67. "Employer responsible for pick up." The public employer by whom a Tier I member or Tier II member is employed.

68. "Tier I or Tier II member contributions eligible for pick up by the employer." (a) With respect to any payroll period for a contributing Tier I or Tier II member (as defined in subdivision sixty-six of this section), the term "Tier I or Tier II member contributions eligible for pick up by the employer" shall mean the amount of member contributions which, in the absence of a pick up program applicable to such member pursuant to section 13-521.1 of this chapter (providing for pick up of required member contributions of certain contributing Tier I or Tier II members) would be required by law to be deducted, on account of such member's basic rate of contribution as a Tier I or Tier II member (as defined in subdivision sixty-five of this section), from the salary of such member for such payroll period, after (1) giving effect to any duction in such contributions required under any program for increased

re

they

able

rate

as

US,

.

ork

take-home-pay or pursuant to subdivision one of section one hundred
thirty-eight-b of the retirement and social security law and (2) exclud-
ing any deductions from such salary (or redeposits, restorations or
payments) on account of (i) loans or withdrawal of excess contributions
or (ii) any election by any such member, pursuant to any applicable
provision of law, to increase his or her member contributions above the
level prescribed by his or her basic rate of contribution as a Tier I or
Tier II member or (iii) any other cause not attributable to the member's
basic rate of contribution as a Tier I or Tier II member after reduction
in such rate, if any, as described in subparagraph one of this paragraph
(a).
a (b) If
no deductions on account of any contributor's basic rate of
contribution as a Tier I or Tier II member are required by law to be
made from the salary of such contributor for any payroll period, such
contributor shall not have, for such payroll period, any Tier 1 or Tier
II member contributions eligible for pick up by the employer. The amount
of Tier I or Tier II member contributions eligible for pick up by the
employer of any Tier I member or Tier II member for any payroll period
shall be determined solely on the basis of salary which would have been
paid to such member for such payroll period by his or her public em-
ployer in the absence of a pick up program applicable to such member
pursuant to section 13-521.1 of this chapter. A Tier I member or Tier II
member shall not have any Tier I or Tier II member contributions eligi-
ble for pick up by the employer with respect to any payroll period for
which he or she is not paid salary by his or her public employer.

"1

69. "Starting date for pick up. The first day of the first whole payroll period commencing after the date which is sixty days after the internal revenue service have issued a ruling that member contributions picked up pursuant to section 13-525.1 of this chapter are not includible as gross income for federal income tax purposes until distributed or made available.

§ 5. The administrative code of the city of New York is amended by adding a new section 13-521.1 to read as follows:

§ 13-521.1 Pick up of member contributions of Tier I and Tier II members by employer. a. Notwithstanding any other provision of law to the contrary, on and after the starting date for pick up, the employer responsible for pick up shall pick up and pay into the annuity savings fund (subject to the provisions of paragraph four of subdivision d of this section) the Tier I or Tier II member contributions eligible for pick up by the employer which each Tier I member (as defined in subdivision fifty-two of section 13-501 of this chapter) or Tier II member (as defined in subdivision fifty-three of such section 13-501) would otherwise be required to make on and after such starting date.

b. An amount equal to the amount of such picked up contributions shall be deducted by the employer responsible for pick up from the salary of such member (as such salary would be in the absence of a pickup program applicable to him or her hereunder) and shall not be paid to such member. Such deduction shall be effected by means of subtraction from such member's current salary (as so defined), or offset against future pay increases, or a combination of such methods.

c. (1) The member contributions picked up pursuant to this section for any Tier I member or Tier II member shall be paid by the employer responsible for pick up in lieu of an equal amount of the member contributions otherwise required to be paid by such member under the provisions of this chapter and shall be deemed to be and treated as employer contributions pursuant to subsection h of section four hundred fourteen of the United States internal revenue code, as amended, for the purposes, under federal law, for which such subsection h so classified such picked up contributions. Subject to the provisions of subdivision b of this section, for all other purposes, including but not limited to:

(i) the obligation of such member to pay New York state and New York city income and/or wages or earnings taxes and the withholding of such taxes; and

(ii) the determination of the amount of such member's Tier I or Tier II member contributions eligible for pick up by the employer; and (iii) the determination of the amount of any retirement allowance or other retirement system benefit payable to or on account of such member

* So in original. ("Tier 1" should be "Tier I".)

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

« SebelumnyaLanjutkan »